Asserting that car companies are not doing enough to rectify around 3 million Australian cars affected by the issue, the ACCC and Minister for Small Business Michael McCormack proposed unprecedented mandatory recalls intended to force car companies to get the issue sorted.

But manufacturers say the proposal is unreasonable, as recall efforts to date have been held back by international parts shortages and a slow response from customers often contacted on multiple occasions.

BMW says car makers are not in a position to force customers to come forward, but government authorities have the power to initiate “a ban on re-registration or renewal of registration of affected vehicles”.

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Mazda’s response to mandatory recalls “requests support from the ACCC/Government to prohibit consumer’s ability to reregister motor vehicles that have outstanding Takata Airbag recall campaigns”.

Mitsubishi believes “this method has the greatest possibility of success”.

“[Mitsubishi] suggests that the ACCC require state and territory registration authorities to take a more proactive role in this recall by denying registration of vehicles fitted with affected Takata airbag inflators,” it said in a statement.

The brand is pushing for Federal Government action on the issue, as state and territory authorities have “refused to accept this as an efficient and timely way to ensure consumers take appropriate action”.

The ACCC’s first proposed mandatory recall states that cars with the most dangerous type of “Alpha” airbags must be rectified within one business day of a customer contacting their manufacturer, while Takata airbags more than five years old must be replaced within one month of the supplier being contacted.

The consumer authority also flagged the possibility of adding a further 877,000 cars equipped with Takata airbags to the list of vehicles already recalled in Australia. That approach was met with mixed responses from the car industry, with some brands adamant that Takata inflators in their cars pose no risk to consumers.

Holden, the brand hardest hit by the ACCC’s proposal, says it has almost 330,000 vehicles on the road with unrectified Takata airbags.

Ford could also be hit by the issue, as it has 109,405 cars, including just short of 70,000 Ranger utes, on the road with inflators made by the beleaguered concern.

Of those 109,405 Fords, around 102,000 are older models which would have to be repaired within a month of owners contacting the company. Most car makers encourage customers to get in touch immediately after a recall, which would put immense pressure on automotive brands, their dealerships and staff.

Volkswagen, another brand that has been reluctant to issue voluntary recalls, said it would face “significant difficulties” obtaining sufficient supply of replacement airbags. Jaguar Land Rover wrote that even if it is able to get hold of airbags, “it will be extremely difficult if not impossible” to fix affected cars according to the ACCC’s proposed timeline.

BMW called for “a level of flexibility in relation to the recall process”, but consumer advocate group Choice said tight timeframes were “the incentive needed” to have potentially dangerous cars rectified.

“Imposing a compulsory recall is a significant step, and one that we understand is not taken lightly. However, the way the voluntary recall has progressed to date has been highly unsatisfactory and has put lives in danger,” Choice spokeswoman Sarah Agar wrote to the ACCC.

“The car manufacturers have demonstrated that they are not up to the task of effectively running this recall on their own terms. It is past time for significant action to ensure Australian consumers are protected and receive timely remedies if they are affected by this recall.”

Choice said the mandatory recall was “fully justified”, a view that contrasted with the likes of Ford, which said “no recall is necessary”, and BMW, which said forced recalls were “contrary to the latest science”.

That position was echoed by Holden and Volkswagen, manufacturers studying whether airbags in their cars will pose a risk in the future. Holden insists that no one has been injured or killed as a result of faulty airbags in cars made by General Motors, and that “Takata inflators in GM vehicles are currently safe”.

Subaru added that proposed language put forward by the ACCC, highlighting the risk of death from Takata airbags, was “inconsistent with Subaru Australia’s understanding of the risk of rupture”.

“A requirement imposed on suppliers to publish statements which do not reflect what is known about the risk posed by affected Takata airbag inflators is not in the best interests of consumers as it could cause unnecessary panic or anxiety, and risks unintended consequences under the consumer guarantee provisions of the ACL,” Subaru said.

Car makers reported a vast spectrum of responses from customers ranging from people who abused Subaru staff for perpetuating a dangerous situation to a Mitsubishi owner who demanded the brand “stop calling me”.

Some brands were bold enough to question whether Minister McCormack had the authority to issue mandatory recalls to rectify the problem.

Mitsubishi’s submission said it “believes that there is no power for the Minister to issue the draft recall notice”, while Subaru stated that some elements were “beyond the power of the Minister to order”.

Car companies have not welcomed some elements of the proposed recalls, including costly provisions for loan cars for customers whose cars cannot be repaired quickly.

Nissan said it would be expected to pay for tow trucks for around 12,000 cars still equipped with Alpha airbags. If a mandatory recall is launched in late 2017, Nissan would have to arrange loan cars for 63,000 customers for up to three months.

The Japanese giant said rural and remote customers pose particularly tricky challenges. Repairs for one customer on Badu Island, in the Torres Straight, could require the brand to ship the car closer to the mainland and fly in a technician with the appropriate parts in a process expected to take “some weeks to complete”.

While Nissan did not publish costs publically for its work, BMW estimated that the cost of complying with expanded recall orders would range between $194 million and $269m.

The luxury brand, which has fewer cars affected by the issue than mainstream concerns, said “significant logistical problems” for rural customers would make it difficult to meet the ACCC’s demands.

Ford agreed that there are “significant cost implications... particularly due to the requirement of providing loan vehicles”, and Holden acknowledged that the “requirement to provide alternative transportation until parts are required will be at significant cost.”

A spokeswoman for the ACCC said it "is consulting extensively, including meeting with suppliers of vehicles and vehicle components, and assessing detailed submissions and expert reports, before making a final recommendation to the Minister".

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Drive Comments

DJM61 | 15 Nov 2017 08:05

The higher risk alpha airbags are in certain models of Honda, Toyota, Nissan, BMW and Lexus cars sold between 1999 and 2006. Standard Takata airbags apparently fail one-in-400 times, but for Alpha airbags, the failure rate is one-in-two. In the USA Honda has told drivers not to drive these cars. They are offering towing services, and yet in Australia the car companies have remained silent. Source Choice.

Selector_ 2 | 15 Nov 2017 11:08

If what DJM61 says is true (and there is no reason to doubt it) then I am surprised someone such as the ACCC has not forced a mandatory recall for Takata alpha airbag equipped vehicles. Even a relatively low speed nose to tail can trigger the front airbags and clearly with Takata alpha airbags fitted the risk or fatal injury is far greater than if no airbag was fitted at all. I have a question. When Takata airbags are replaced do they replace ALL airbags or just the front facing ones ?

Selector 2 | 15 Nov 2017 12:19

My father has a 2013 Pajero and has only just got a recall, doesn't seem like Mitsubishi was that worried themselves, so to call for cars off the road?